SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the Third Quarter Ended January 31, 1997
                           Commission File No. 1-9471


               ---------------------------------------------------

                              CRUISE AMERICA, INC.


                  State of Florida          I.R.S. No. 59-1403609

                             11 West Hampton Avenue
                            Mesa, Arizona 85210-5258

                            Telephone: (602) 464-7300



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the  Securities  and  Exchange Act of 1934
during the  preceding  twelve (12) months (or for such  shorter  period that the
registrant  was required to file such  reports) and (2) has been subject to such
filing requirements for the past ninety (90) days.

                   YES            X               No
                              ---------                     ---------

                          Common Stock, $.01 Par Value
As of January 31, 1997,  5,753,468 shares of the registrant's  common stock were
outstanding of which 4,289,556 were held by non-affiliates of the registrant.
<PAGE>
                                TABLE OF CONTENTS
                                -----------------

                      CRUISE AMERICA, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
ITEM                                                                                                                   PAGE
----------------------------------------------------------------------------------------------------------------------------


                                                          PART I
                                                   FINANCIAL INFORMATION

<S>                                                                                                                       <C>
1.       FINANCIAL STATEMENTS

         Condensed Consolidated Balance Sheets............................................................................1

         Condensed Consolidated Statements of Operations..................................................................3

         Condensed Consolidated Statements of Cash Flows..................................................................4

         Notes to Condensed Consolidated Financial Statements.............................................................5

2.       Management's Discussion and Analysis of Consolidated Financial Condition
         and Results of Operations........................................................................................6
</TABLE>
<PAGE>
PART I.           FINANCIAL INFORMATION
ITEM 1            FINANCIAL STATEMENTS

                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                   A S S E T S

                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                   Unaudited
                                                                                -----------------------------------------
                                                                                   01/31/97                   4/30/96
                                                                                -----------------------------------------
<S>                                                                             <C>                     <C>  
Current Assets:

Cash and Cash Equivalents.....................................................      $   2,663                   2,341

Accounts Receivable, Net......................................................          2,695                   4,056

Inventories...................................................................         12,219                  11,752

Prepaid Expenses and Other Current Assets.....................................          1,430                     889
                                                                                -------------           -------------
         Total Current Assets.................................................         19,007                  19,038
                                                                                -------------           -------------
Rental Vehicles...............................................................        100,708                  79,094

Less Accumulated Depreciation.................................................         20,332                  15,576
                                                                                -------------           -------------
         Net Rental Vehicles..................................................         80,376                  63,518
                                                                                -------------           -------------
Property and Equipment........................................................         17,745                  17,426

Less Accumulated Depreciation.................................................          7,414                   6,916
                                                                                -------------           -------------
         Net Property and Equipment...........................................         10,331                  10,510
                                                                                -------------           -------------
Deposits and Other Assets.....................................................          2,707                   2,629
                                                                                -------------           -------------
                                                                                     $112,421                  95,695
                                                                                -------------           -------------
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
                                        1
<PAGE>
                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                        (In thousands except share data)
<TABLE>
<CAPTION>
                                                                                   Unaudited
                                                                                -------------------------------------
                                                                                   01/31/97                   4/30/96
                                                                                -------------------------------------
<S>                                                                             <C>                     <C>  
Current Liabilities:

Floor Plan Contracts..........................................................      $   3,577                   2,245

Current Installments of Rental Vehicle Financing..............................         14,664                  10,723

Current Installments of Long-Term Debt........................................          4,523                   3,023

Accounts Payable and Accrued Expenses.........................................          2,926                   1,980

Customer Deposits.............................................................            645                   4,605
                                                                                -------------           -------------
         Total Current Liabilities............................................         26,335                  22,576
                                                                                -------------           -------------

Rental Vehicle Financing, Excluding Current Installments......................         35,568                  29,561

Long-Term Debt, Excluding Current Installments................................         17,793                  19,412

Deferred Income Taxes.........................................................          3,316                     684


Stockholders' Equity:

Preferred Stock $1.00 par value; 1,000,000 shares authorized, none
issued or outstanding.........................................................             --                      --

Common Stock $.01 par value, 15,000,000 shares authorized,
5,753,000 and 5,740,000 issued and outstanding at January 31, 1997
and April 30, 1996 respectively...............................................             58                      57

Additional Paid-in Capital....................................................         24,989                  24,953

Retained Earnings (Deficit)...................................................          4,956                    (902)

Translation Adjustment........................................................           (594)                   (646)
                                                                                -------------           -------------
         Total Net Stockholders' Equity.......................................         29,409                  23,462

Contingencies.................................................................
                                                                                -------------           -------------
                                                                                     $112,421                  95,695
                                                                                -------------           -------------
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
                                        2
<PAGE>
                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

                      (In thousands except per share data)
<TABLE>
<CAPTION>
                                                                Three Months Ended                        Nine Months Ended
                                                         --------------------------------       -----------------------------------
                                                            01/31/97           01/31/96             01/31/97            01/31/96
                                                         --------------------------------       -----------------------------------
<S>                                                      <C>               <C>                  <C>                <C>   
Rental Revenue..........................................    $    3,606              3,234               49,877              41,291

Sales...................................................        10,392             10,613               28,710              34,779
                                                         -------------     --------------       --------------     ---------------
         Total Revenue..................................        13,998             13,847               78,587              76,070
                                                         -------------     --------------       --------------     ---------------


Cost of Rentals.........................................         3,446              2,885               20,043              16,568

Cost of Sales...........................................         9,898              9,891               26,682              31,486
                                                         -------------     --------------       --------------     ---------------
         Total Costs....................................        13,344             12,776               46,725              48,054
                                                         -------------     --------------       --------------     ---------------


Gross Profit from Operations............................           654              1,071               31,862              28,016

Interest Expense........................................         1,944              1,830                5,911               5,608

Selling, General and Administrative Expenses............         4,605              4,464               17,461              16,717
                                                         -------------     --------------       --------------     ---------------


Earnings (Loss) Before Income Taxes.....................        (5,895)            (5,223)               8,490               5,691

Income Tax Expense (Benefit) ...........................        (1,836)            (1,219)               2,632               1,327
                                                         -------------     --------------       --------------     ---------------


Net Earnings (Loss).....................................    $   (4,059)            (4,004)               5,858               4,364
                                                         -------------     --------------       --------------     ---------------


Earnings (Loss) per Share
(Primary and Fully Diluted).............................    $    (.69)              (.70)                  .99                 .76
                                                         -------------     --------------       --------------     ---------------


Shares Used in Calculation..............................         5,882              5,719                5,889               5,709
                                                         -------------     --------------       --------------     ---------------
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
                                        3
<PAGE>
                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                          Nine Months Ended
                                                                             ------------------------------------------
                                                                                01/31/97                   01/31/96
                                                                             ------------------------------------------
<S>                                                                          <C>                        <C>  
Cash Flows from Operating Activities:
      Net Earnings.........................................................       $   5,858                       4,364
      Depreciation and Amortization........................................          11,140                      10,385
      Increase in Deferred Income Taxes....................................           2,632                       1,327
      Gain on Sale of Rental Vehicles......................................            (690)                     (1,014)
      Decrease (Increase) in Accounts Receivable, Net......................           1,361                        (611)
      Decrease (Increase) in Inventories...................................            (467)                      1,539
      Increase in Accounts Payable and Accrued Expenses....................             946                       1,340
      Increase in Floor Plan Contracts.....................................           1,332                       2,827
      Decrease in Customer Deposits........................................          (3,960)                     (5,877)
      Other, Net...........................................................            (732)                       (679)
                                                                             --------------             ---------------
      Net Cash Provided by Operating Activities............................          17,420                      13,601
                                                                             --------------             ---------------
Cash Flows from Financing Activities:
      Proceeds from Rental Vehicle Borrowing...............................          53,414                      41,934
      Repayment of Rental Vehicle Borrowing................................         (43,466)                    (36,401)
      Repayment of Long-Term Borrowing.....................................            (119)                       (174)
      Exercise of Stock Options............................................              37                          99
                                                                             --------------             ---------------
      Net Cash Provided by Financing Activities............................           9,866                       5,458
                                                                             --------------             ---------------
Cash Flows from Investing Activities:
      Purchase of Rental Vehicles..........................................         (48,428)                    (41,275)
      Proceeds from Rental Vehicle Sales...................................          21,783                      22,107
      Purchase of Property and Equipment...................................            (319)                       (552)
                                                                             --------------             ---------------
      Net Cash Used in Investing Activities................................         (26,964)                    (19,720)
                                                                             --------------             ---------------
Increase in Cash and Cash Equivalents......................................             322                        (661)
Cash and Cash Equivalents at April 30......................................           2,341                       3,091
                                                                             --------------             ---------------
Cash and Cash Equivalents at January 31....................................       $   2,663                       2,430
                                                                             --------------             ---------------
</TABLE>
     See accompanying notes to condensed consolidated financial statements.
                                        4
<PAGE>
                      CRUISE AMERICA, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                       NINE MONTHS ENDED JANUARY 31, 1997


NOTE 1.

In the opinion of management,  the accompanying unaudited condensed consolidated
financial  statements  contain all the  adjustments  (principally  consisting of
normal recurring accruals) necessary to present fairly the financial position of
Cruise America,  Inc. and Subsidiaries (the Company) as of January 31, 1997, and
the results of operations  for the nine month periods ended January 31, 1996 and
1997.

Certain items in the prior year financial  statements have been  reclassified to
conform with the current period presentations.

NOTE 2.

Supplemental Disclosures of Cash Flow Information (in thousands):

                                                       Nine Months Ended
                                              --------------------------------
                                                 01/31/97          01/31/96
                                              --------------    --------------
Cash paid during the period for:

         Interest on Borrowings                 $   5,284            4,755
                                              --------------    --------------


NOTE 3.

On May 14, 1987, a concession  operator of American Land Cruisers of California,
Incorporated  (ALCCAL, a subsidiary of the Company) commenced a lawsuit entitled
Altman's America, et al. v. American Land Cruisers of California,  Incorporated,
et al. in the Superior  Court of the State of  California  for the County of Los
Angeles.  The action rose out of a claim for an alleged wrongful  termination by
ALCCAL of a sublease agreement.  This case has been tried twice. The first trial
resulted  in a  judgement  in the amount of  approximately  $3.5  million.  That
judgement  was reversed on appeal and  remanded  for  retrial.  The second trial
resulted  in  judgements  for the  plaintiffs  in the amount of  $235,000  and a
judgement  for ALCCAL of $634,000,  which  equaled a net judgement for ALCCAL of
$399,000.  On July 18, 1996 the Appellate  Court reduced the total amount due to
ALCCAL by  approximately  $400,000 and  remanded  the case for  retrial.  ALCCAL
intends to pursue all means to defeat the case.

The Company is a party to various claims,  legal actions and complaints  arising
in  the  ordinary  course  of  business.  In  the  opinion  of  management,  the
disposition  of these  matters  will not have a material  adverse  effect on the
financial condition of the Company.
                                        5
<PAGE>
PART 1.           FINANCIAL INFORMATION
ITEM 2

                      CRUISE AMERICA, INC. AND SUBSIDIARIES

              Management's Discussion and Analysis of Consolidated
                  Financial Condition and Results of Operations
                       Nine Months Ended January 31, 1997

This  Quarterly  Report  on  Form  10-Q  contains  forward-looking   statements.
Additional  written  or  oral  forward-  looking  statements  may be made by the
Company from time to time in filings with the Securities and Exchange Commission
or otherwise.  Such forward  looking  statements  are within the meaning of that
term in Section 27A of the Securities  Act of 1933, as amended,  and Section 21F
of the Securities Exchange Act of 1934, as amended. Such statements may include,
but are not  limited to,  projections  of  revenues,  income,  or loss,  capital
expenditures,  plans for future operations,  financing needs or plans, and plans
relating to products or services of the Company, as well as assumptions relating
to the foregoing.

Forward-looking  statements are inherently  subject to risks and  uncertainties,
some of which  cannot be  predicted  or  quantified.  Future  events  and actual
results could differ  materially  from those set forth in,  contemplated  by, or
underlying the forward-looking  statements.  Statements in the Quarterly Report,
including  the Notes to the  Condensed  Consolidated  Financial  Statements  and
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations,"  describe factors,  among others, that could contribute to or cause
such differences.  Additional  factors that could cause actual results to differ
materially from those expressed in such forward looking statements are set forth
in Exhibit 99 to the Company's July 31, 1996 Quarterly Report on Form 10-Q.

SEASONALITY

The Company's business is seasonal. In the first and second fiscal quarters, the
Company  historically  records profits.  In the third and fourth  quarters,  the
Company  historically  records losses. The Company's purchases of motorhomes for
the rental fleet are also seasonal, with the majority of purchases being made in
the first and fourth fiscal quarters. Due to the seasonality of rental and sales
operations, certain accounts fluctuate from quarter to quarter.

LIQUIDITY AND CAPITAL RESOURCES

As of January 31, 1997, the Company had current liabilities in excess of current
assets in the amount of $7,328,000. The Company's working capital, as presented,
includes  a  significant  portion of Rental  Vehicle  Financing.  The  Company's
working  capital  does  not,  however,   include  any  portion  of  the  related
assets--Rental Vehicles, even though a significant portion of these vehicles are
expected to be sold during the next 12 months through the Company's normal fleet
rotation.  If these assets were classified as current assets,  the Company would
not have a working capital deficit.

The Company believes that,  during the next year, cash generated from operations
and financing  available  from banks and other  financial  institutions  will be
sufficient for its capital and operating needs. At January 31, 1997, the Company
believes it is in compliance with all debt covenants associated with its various
financing agreements.

NINE MONTHS ENDED JANUARY 31, 1997 AS COMPARED WITH
NINE MONTHS ENDED JANUARY 31, 1996

Rental  Revenue for the nine  months  ended  January  31,  1997 was  $49,877,000
compared to  $41,291,000  for the nine months ended  January 31, 1996.  This 21%
increase was due primarily to a 24% increase in revenue days offset in part by a
3% decline in average revenue per day. The increase in revenue days was due to a
20% increase in average fleet size as well as an increase in  utilization to 55%
in 1997 from 53% in 1996 due to strong summer demand.
                                        6
<PAGE>
Sales for the nine months ended January 31, 1997, were $28,710,000,  compared to
$34,779,000 for the same period a year ago. Wholesale sales declined in part due
to the Company's  conversion to a modular motorhome fleet,  which has the effect
of extending  the service life of the rental  vehicle by replacing  the chassis.
Sales at retail were affected by a continuing  industry-wide  slow down in sales
as well as inventory  constraints  due to the Company's  high peak season rental
fleet utilization.

Cost of Rentals as a  percentage  of Rental  Revenue was 40% in 1997 and 1996. A
slight  reduction in rental  rates  offset  economies  achieved  through  higher
utilization.

Cost of Sales as a percentage of Sales was 93% for the nine months ended January
31, 1997, compared to 91% for the same period a year earlier. A shift in mix was
primarily  responsible  for the increase,  as lower margin Rental  Vehicle Sales
increased to 72% of total sales in 1997 compared to 64% in 1996.

Interest  Expense for the nine months  ended  January 31, 1997,  was  $5,911,000
compared to $5,608,000 in 1996.  Higher Rental  Vehicle  Financing was offset in
part by lower average interest rates.

Selling,  General and  Administrative  Expenses as a percentage of Total Revenue
was 22% in both 1997 and 1996.

THREE MONTHS ENDED JANUARY 31, 1997 AS COMPARED WITH
THREE MONTHS ENDED JANUARY 31, 1996

Rental Revenue for the quarter ended January 31, 1997 was $3,606,000 compared to
$3,234,000  for the  quarter  ended  January 31,  1996.  This  increase  was due
primarily  to a 19%  increase in revenue  days offset in part by a 6% decline in
revenue per day. Revenue days increased due to an increase in average fleet size
offset in part by a slight decrease in utilization.

Sales for the  quarter  ended  January  31,  1997 were  $10,392,000  compared to
$10,613,000  in 1996.  An  increase in Rental  Vehicle  Sales in the quarter was
offset by a decline in sales of new vehicles.

Cost of Rentals as a percentage  of Rental  Revenue was 96% in 1997  compared to
89% in 1996.  Although  Rental  Revenue  increased  compared  to the prior year,
holding  costs also  increased as a result of a larger fleet being  carried over
from the summer peak.

Cost of Sales as a percentage  of Sales was 95% in 1997 compared to 93% in 1996.
An increase in lower margin Rental  Vehicle Sales as a percentage of total Sales
impacted the Cost of Sales percentage.

Interest Expense for the quarter ended January 31, 1997 was $1,944,000  compared
to $1,830,000 in 1996. Lower interest rates were offset by higher Rental Vehicle
Financing during the period.

Selling,  General and  Administrative  Expenses as a percentage of Total Revenue
was 33% in 1997 compared to 32% in 1996. A slight  increase in Rental Revenue as
a  percentage  of Total  Revenue from 23% in 1996 to 26% in 1997 was the primary
cause of this increase. Rentals are more overhead intensive than sales.
                                        7
<PAGE>
                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                              CRUISE AMERICA, INC.
March 3, 1997                                 Eric R.  Bensen
                                              -----------------------------
                                              Eric R. Bensen
                                              Vice President
                                              Chief Financial Officer

March 3, 1997                                 Randall Smalley
                                              -----------------------------
                                              Randall Smalley
                                              President
                                              Chief Executive Officer
                                        8